The Central Bank of Nigeria (CBN) has announced the temporary withdrawal of the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024–2025, which were published on September 17, 2024.
The CBN stated that this decision aims to minimize the risk of further misrepresentation or misinterpretation that could lead to confusion among stakeholders. This announcement was made in a new statement on its website on Friday, although it was not signed by any CBN official.
On Tuesday, excerpts from the policy document indicated that the bank would maintain Ways and Means Advances to the Federal Government at a five percent limit for the fiscal years 2024–2025. This stance contradicts a bill passed by the National Assembly that increased the maximum borrowing percentage from five percent to ten percent.
Another contentious point was the reinstatement of the cybersecurity levy, which had been suspended earlier this year due to significant public backlash.
However, the CBN clarified that the guidelines were misunderstood by some outlets as new policies; they are actually a compilation of previously issued policies and directives effective until December 31, 2023. It also noted that some policies mentioned in the guidelines have been revised or replaced by newer updates.
The statement read, “The attention of the Central Bank of Nigeria has been drawn to certain instances of misinterpretation or misrepresentation of its biennial publication on Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines published on September 17, 2024.
“In response, the CBN has temporarily withdrawn the document to minimize the risk of any further misrepresentation. As is stated explicitly in the document to guide stakeholders, the CBN reiterates that the publication is a compilation of previously issued policies and guidelines issued by the bank up to a cut-off date, typically December 31 of the relevant year.
“As in all previous editions, the current document is intended to achieve the following objectives: A single reference source for the ease and convenience of stakeholders. A valid compilation of policies, directives, and guidelines for adjudication in conflict situations involving stakeholders.”
The bank clarified that as a compilation of previously issued policies and guidelines, the provisions apply only if there have been no updates or revisions to the content. It emphasized that this stipulation is explicitly stated in the document to guide stakeholders.
“In line with prior editions, the most recent publication (January 2024) contains policies and guidelines issued by the bank up to December 31, 2023, some of which will remain relevant during the period 2024 – 2025,” the bank stated.
Continuing, the statement noted that, “In the light of these clarifications, we ask stakeholders to note the following: Some recent media publications referencing aspects of the guidelines refer to policy positions of the bank issued prior to December 31, 2023, which have changed in the light of revisions and updates in 2024. One example is the Cyber Security Levy, which was suspended in May 2024, superseding the circular reported in the guidelines.
“Certain technical aspects of the guidelines have been widely misreported and misrepresented. For example, reports have mistakenly sought to link the fuel subsidy removal to external reserves. Such reports essentially missed the analytical basis for the original statement, which was intended to observe a potential risk that was to be mitigated by policy. More recently, policies of the bank around the naira exchange rate and those of the fiscal authorities have positively altered the outlook of the subject in question.
“In summary, the guidelines must primarily be viewed as a record of policies, circulars and directives issued by the bank up to the end of 2023. They are not new directives and should not be reported as such.
“The bank will continue to provide clear monetary policy direction and advice for the overall good of the economy. We urge all stakeholders to seek clarification of information about the Bank before publishing,” the statement ended.
